Exchange of Notes concerning Yen Loan to India

    On March 20, Mr. SUZUKI Hiroshi, Ambassador of Japan to India, and Mr. Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, exchanged notes in New Delhi, concerning the provision of yen loan for the construction of Mumbai-Ahmedabad High Speed Rail (IV) (loan provision of up to 300.000 billion yen).
1.  Overview of the Yen Loan Project 
            This project is to provide a loan to the Government of India for the construction of a high speed rail with the introduction of Japan’s Shinkansen system between Mumbai in the state of Maharashtra and Ahmedabad in the state of Gujarat. It is expected that the new high speed train will cover a distance of approximately 500 kilometers between Mumbai and Ahmedabad in two hours, as compared to five hours required by the current express train service. Through the realization of a mass passenger transportation system, this project will contribute to the efficiency of the transportation network and promote economic development in a broad range of areas.
2.  Terms and Conditions of the Loan
i. Interest rate: 0.10% per annum
ii. Redemption period: 50 years (including a 15-year grace period)
iii. Procurement terms: Tied between Japan and India